I do agree with your assessments that we should not calculate SG&A from cash reports as it also includes COGS, and agree that 2021 Net Profit will hover around break-even. What are your thoughts about 2023? I think 2022 Net Profit will achieve at least $5m+, if SPS revenue grew by 20% to $51m (from $42.5m mid-range forecast in 2021) supported by $84m CES (assume current $168m CES backlog will be evenly split across next two years) and $8m in RR, based on the margins as you mentioned, this equates to $143m in Gross Profit. However, I'm a little concerned about 2023 when IC project is complete, even if SPS grew another 20% ($61m), with IC completing unless there's other projects that can maintain the same profitability as IC the Gross Profit in 2023 will decline substantially.
What are your thoughts?
FLC Price at posting:
18.5¢ Sentiment: None Disclosure: Held
